DSInsurance
Expert
- 54
I am thinking about adding this company to my agency. I am in WI has anyone had experience with them. Service, ease of doing business, rates, etc?
Thanks for any feedback.
Dan
Thanks for any feedback.
Dan
State Auto Insurance
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benk622
Expert
We don't have them but did go into pretty long talks about an appointment.
Good company but I've seen their rates all over the place. I think they are making some big adjustments at least here in Ohio.
They used to write a ton of habitational and I still see them the most on apartments but the marketing rep said they were no longer writing any new business there.
I would check to see how much business they have in WI, it can be tough to get into a long term relationship with a regional if they have only a small amount of premium in a state. We did it with one and its been a big mistake very hard on underwriting and large rate swings.
Good company but I've seen their rates all over the place. I think they are making some big adjustments at least here in Ohio.
They used to write a ton of habitational and I still see them the most on apartments but the marketing rep said they were no longer writing any new business there.
I would check to see how much business they have in WI, it can be tough to get into a long term relationship with a regional if they have only a small amount of premium in a state. We did it with one and its been a big mistake very hard on underwriting and large rate swings.
btbrown
New Member
Here is the Good, The Bad, and the Ugly on State Auto.
The Good: Have Great Underwriters, Above Average Commission, A broad niche market, don't slam people as hard on credit, and above average claims.
The Bad: Will probably cancel your contract if you don't produce or have a poor loss ratio. They recently canceled several contracts to try to improve there combined. Why is this a concern? I find they tend to attract risks with accidents, tickets, and claims which means it may be harder to control your loss ratio. I like them as a company and know they will get it together but I fear rate increases.
For example: In Arizona you get a 20% discount on your auto and home policies for bundling. For a substandard auto risk who was quoted $2500 monoline and decides to add his home which came back as $500 year he saves $500 on his auto insurance and really is getting the home for free with the discount. They currently don't tier the discount so no matter if your a bad or good risk you get 20%. It should be tiered to avoid adverse selection. There home product is not profitable so they also should consider lowering the discount to maybe 15% for having auto insurance.
The Ugly: 2012 Combined Ratio was107.9 and 2011 was 116.3. Lost AM Best A+ Rating in 2011.
If you are looking for a company that wants to work with Agents and has good products State Auto is a good company. You just have to be willing to take the bumpy ride! I hope that management will be able to get this together. It probably also means cutting commissions as they have a higher than average expense ratio.
Hope this helps.
The Good: Have Great Underwriters, Above Average Commission, A broad niche market, don't slam people as hard on credit, and above average claims.
The Bad: Will probably cancel your contract if you don't produce or have a poor loss ratio. They recently canceled several contracts to try to improve there combined. Why is this a concern? I find they tend to attract risks with accidents, tickets, and claims which means it may be harder to control your loss ratio. I like them as a company and know they will get it together but I fear rate increases.
For example: In Arizona you get a 20% discount on your auto and home policies for bundling. For a substandard auto risk who was quoted $2500 monoline and decides to add his home which came back as $500 year he saves $500 on his auto insurance and really is getting the home for free with the discount. They currently don't tier the discount so no matter if your a bad or good risk you get 20%. It should be tiered to avoid adverse selection. There home product is not profitable so they also should consider lowering the discount to maybe 15% for having auto insurance.
The Ugly: 2012 Combined Ratio was107.9 and 2011 was 116.3. Lost AM Best A+ Rating in 2011.
If you are looking for a company that wants to work with Agents and has good products State Auto is a good company. You just have to be willing to take the bumpy ride! I hope that management will be able to get this together. It probably also means cutting commissions as they have a higher than average expense ratio.
Hope this helps.
jmr30183
Expert
What he said!
Their rates are all over the place, especially on Homeowners. I haven't worked with them since the end of 2011 (when I decided to give up agency life and get into the Commercial Premium Auditing business). But at that time, they were still trying to recover from several years of insane weather/CAT-related losses.
I can say that their underwriters (at least for Personal Lines) and other folks were all great to work with. From 2000-2003, I was also one of their customers. I was hit by an Uninsured Motorist and my almost new Honda Accord was totaled and their service was VERY impressive! The paid quickly and and fairly, without any hassles.
As much as I like them, I didn't write a lot of business with them. The one niche market that I placed with them was single mothers. I'm not sure if they do this in all states, but in Georgia they rate a single parent with primary custody of a child the same a married person.
I never placed any Commercial Lines business with them, but that may not matter to you if you only plan to use them for Personal Lines.
I would suggest you to check online reviews of the insurance company before taking any decision.
- 1,473
I think State Auto is more of prefer company. Non Standard are a good Idea to have in your agency..like progressive, titan or GMAC.
- 783
i agree with btbrown.
I have had State Auto since I went Indy, 6 years ago.
Regarding personal lines: I have placed a large amount of premium with them only to re market those accounts a year or two later. Serious rate inconsistency. Now they are a player again, but with their loss ratio, something has to give. I hate re marketing. Their rating system is clunky and difficult to figure out, but making changes are easy and clear.
Regarding commercial lines: pretty steady, not scared of large accounts, they do not like contractors, but will write a fleet of contractors autos at a rate that cannot be touched. But this is AZ....WI, maybe totally different. Their commercial rating system is easy to quote, easy to issue.
They do insist on production and want a pretty good size book. If your loss ratios are out of line, they certainly let you know.
I have had State Auto since I went Indy, 6 years ago.
Regarding personal lines: I have placed a large amount of premium with them only to re market those accounts a year or two later. Serious rate inconsistency. Now they are a player again, but with their loss ratio, something has to give. I hate re marketing. Their rating system is clunky and difficult to figure out, but making changes are easy and clear.
Regarding commercial lines: pretty steady, not scared of large accounts, they do not like contractors, but will write a fleet of contractors autos at a rate that cannot be touched. But this is AZ....WI, maybe totally different. Their commercial rating system is easy to quote, easy to issue.
They do insist on production and want a pretty good size book. If your loss ratios are out of line, they certainly let you know.
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